bigc-10q_20200630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

 

(Mark One)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

Commission File Number: 001-39423

 

 

BigCommerce Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

46-2707656

( State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

11305 Four Points Drive

Building II, 3rd Floor

Austin, Texas

78726

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (512) 865-4500

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

    Series 1 common stock, $0.0001 par value per share

 

BIGC

 

The Nasdaq Global Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐    No  

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.     Yes  ☒    No  

As of September 7, 2020, the registrant had 62,563,651 shares of Series 1 common stock, $0.0001 par value per share and 5,050,555 shares of Series 2 common stock, $0.0001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (Unaudited)

2

 

Condensed Consolidated Balance Sheets

3

 

Condensed Consolidated Statements of Operations

4

 

Condensed Consolidated Statements of Comprehensive Income (Loss)

5

 

Condensed Consolidated Statements of Cash Flows

7

 

Notes to Unaudited Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

42

Item 4.

Controls and Procedures

43

PART II.

OTHER INFORMATION

44

Item 1.

Legal Proceedings

44

Item 1A.

Risk Factors

44

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

68

Item 3.

Defaults Upon Senior Securities

69

Item 4.

Mine Safety Disclosures

69

Item 5.

Other Information

69

Item 6.

Exhibits

69

Signatures

71

 

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

 

Index to Financial Statements

BigCommerce Holdings, Inc.

 

Unaudited Consolidated Financial Statements

 

Consolidated Balance Sheets

 

Consolidated Statements of Operations

 

Consolidated Statements of Comprehensive Loss

 

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

 

Consolidated Statements of Cash Flows

 

Notes to the Consolidated Financial Statements

 

 

 

2


Table of Contents

 

 

BigCommerce Holdings, Inc.

Consolidated Balance Sheets

(Unaudited, in thousands, except per share amounts)

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

25,390

 

 

$

7,795

 

Restricted cash

 

 

1,121

 

 

 

1,355

 

Accounts receivable, net

 

 

20,244

 

 

 

15,548

 

Prepaid expenses and other assets

 

 

7,837

 

 

 

5,296

 

Deferred commissions

 

 

1,971

 

 

 

1,677

 

Total current assets

 

 

56,563

 

 

 

31,671

 

Property and equipment, net

 

 

7,608

 

 

 

8,241

 

Right-of-use-assets

 

 

12,888

 

 

 

14,065

 

Deferred commissions, net of current portion

 

 

2,558

 

 

 

2,087

 

Total assets

 

$

79,617

 

 

$

56,064

 

Liabilities, convertible preferred stock, and stockholders’

   equity (deficit)

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,752

 

 

$

3,881

 

Accrued liabilities

 

 

2,843

 

 

 

5,849

 

Deferred revenue

 

 

11,257

 

 

 

9,399

 

Current portion of long-term debt

 

 

2,215

 

 

 

2,363

 

Current portion of operating lease liabilities

 

 

2,945

 

 

 

2,718

 

Other current liabilities

 

 

13,326

 

 

 

9,704

 

Total current liabilities

 

 

38,338

 

 

 

33,914

 

Deferred revenue, net of current portion

 

 

1,060

 

 

 

1,492

 

Long-term debt, net of current portion

 

 

69,121

 

 

 

38,502

 

Operating lease liabilities, net of current portion

 

 

14,152

 

 

 

15,705

 

Total liabilities

 

 

122,671

 

 

 

89,613

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible preferred stock

 

 

 

 

 

 

 

 

Convertible preferred stock, $0.0001 par value; 102,030 shares

   authorized, issued and outstanding at June 30, 2020,

   and December 31, 2019

 

 

227,452

 

 

 

223,754

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 205,000 shares voting and

   45,000 shares non-voting authorized at June 30, 2020 and

   December 31, 2019; 19,378, and 18,544 shares voting issued and

   outstanding at June 30, 2020 and December 31, 2019,

   respectively, and no shares non-voting issued and

   outstanding at June 30, 2020, and December 31, 2019.

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

20,571

 

 

 

17,244

 

Accumulated deficit

 

 

(291,079

)

 

 

(274,549

)

Total stockholders’ equity (deficit)

 

 

(270,506

)

 

 

(257,303

)

 

 

 

 

 

 

 

 

 

Total liabilities, convertible preferred stock, and stockholders’

   equity (deficit)

 

$

79,617

 

 

$

56,064

 

 

The accompanying notes are an integral part of these consolidated financial statements.

3


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

36,316

 

 

$

27,235

 

 

$

69,490

 

 

$

52,819

 

Cost of revenue

 

 

7,837

 

 

 

6,227

 

 

 

15,317

 

 

 

12,152

 

Gross profit

 

 

28,479

 

 

 

21,008

 

 

 

54,173

 

 

 

40,667

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

16,803

 

 

 

15,963

 

 

 

32,565

 

 

 

30,099

 

Research and development

 

 

11,345

 

 

 

10,468

 

 

 

22,266

 

 

 

21,300

 

General and administrative

 

 

7,714

 

 

 

5,222

 

 

 

14,180

 

 

 

10,221

 

Total operating expenses

 

 

35,862

 

 

 

31,653

 

 

 

69,011

 

 

 

61,620

 

Loss from operations

 

 

(7,383

)

 

 

(10,645

)

 

 

(14,838

)

 

 

(20,953

)

Interest income

 

 

17

 

 

 

86

 

 

 

18

 

 

 

241

 

Interest expense

 

 

(1,152

)

 

 

(410

)

 

 

(1,914

)

 

 

(770

)

Change in fair value of financial instruments

 

 

 

 

 

 

 

 

4,413

 

 

 

 

Other expense

 

 

40

 

 

 

(56

)

 

 

(163

)

 

 

(77

)

Loss before provision for income taxes

 

 

(8,478

)

 

 

(11,025

)

 

 

(12,484

)

 

 

(21,559

)

Provision for income taxes

 

 

3

 

 

 

7

 

 

 

20

 

 

 

14

 

Net loss

 

$

(8,481

)

 

$

(11,032

)

 

$

(12,504

)

 

$

(21,573

)

Cumulative dividends and accretion of issuance costs on Series F

   preferred stock

 

$

(1,953

)

 

$

(1,798

)

 

$

(3,698

)

 

$

(3,552

)

Net loss attributable to common stockholders

 

$

(10,434

)

 

$

(12,830

)

 

$

(16,202

)

 

$

(25,125

)

Basic and diluted net loss per share attributable to common

   stockholders

 

$

(0.54

)

 

$

(0.73

)

 

$

(0.86

)

 

$

(1.43

)

Weighted average shares used to compute basic and diluted net

   loss per share attributable to common stockholders

 

 

19,149

 

 

 

17,592

 

 

 

18,852

 

 

 

17,540

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

4


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Comprehensive Loss

(Unaudited, in thousands)

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

Net loss

 

$

(8,481

)

 

$

(11,032

)

 

$

(12,504

)

 

$

(21,573

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gain (loss) on marketable debt securities

 

 

 

 

 

14

 

 

 

 

 

 

14

 

Total comprehensive loss

 

$

(8,481

)

 

$

(11,018

)

 

$

(12,504

)

 

$

(21,559

)

 

The accompanying notes are an integral part of these consolidated financial statements.

 

5


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(Unaudited, in thousands)

 

 

 

Convertible Preferred

Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Stockholders’

Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

(Deficit)

 

Balance at December 31, 2018

 

 

102,030

 

 

$

216,446

 

 

 

 

17,445

 

 

$

2

 

 

$

13,261

 

 

$

(224,725

)

 

$

(14

)

 

$

(211,476

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

96

 

 

 

 

 

 

132

 

 

 

 

 

 

 

 

 

132

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

595

 

 

 

 

 

 

 

 

 

595

 

Accumulated dividend – Series F

 

 

 

 

 

1,736

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,736

)

 

 

 

 

 

(1,736

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,541

)

 

 

 

 

 

(10,541

)

Balance at March 31, 2019

 

 

102,030

 

 

$

218,200

 

 

 

 

17,541

 

 

$

2

 

 

$

13,970

 

 

$

(237,002

)

 

$

(14

)

 

$

(223,044

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

360

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

40

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

821

 

 

 

 

 

 

 

 

 

821

 

Accumulated dividend – Series F

 

 

 

 

 

1,780

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,780

)

 

 

 

 

 

(1,780

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11,032

)

 

 

 

 

 

(11,032

)

Balance at June 30, 2019

 

 

102,030

 

 

$

219,998

 

 

 

 

17,901

 

 

$

2

 

 

$

14,813

 

 

$

(249,814

)

 

$

(14

)

 

$

(235,013

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred

Stock

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

Accumulated

Other

Comprehensive

 

 

Stockholders’

Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Loss

 

 

(Deficit)

 

Balance at December 31, 2019

 

 

102,030

 

 

$

223,754

 

 

 

 

18,544

 

 

$

2

 

 

$

17,244

 

 

$

(274,549

)

 

$

 

 

$

(257,303

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

448

 

 

 

 

 

 

404

 

 

 

 

 

 

 

 

 

404

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,026

 

 

 

 

 

 

 

 

 

1,026

 

Accumulated dividend – Series F

 

 

 

 

 

1,727

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,727

)

 

 

 

 

 

(1,727

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Warrants issued in connection with debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

297

 

 

 

 

 

 

 

 

 

297

 

Adoption of new accounting standard - See Note 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(364

)

 

 

 

 

 

(364

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,023

)

 

 

 

 

 

(4,023

)

Balance at March 31, 2020

 

 

102,030

 

 

$

225,499

 

 

 

 

18,992

 

 

$

2

 

 

$

18,953

 

 

$

(280,663

)

 

$

 

 

$

(261,708

)

Exercise of stock options

 

 

 

 

 

 

 

 

 

351

 

 

 

 

 

 

366

 

 

 

 

 

 

 

 

 

366

 

Exercise of warrants

 

 

 

 

 

 

 

 

 

35

 

 

 

 

 

 

126

 

 

 

 

 

 

 

 

 

126

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,144

 

 

 

 

 

 

 

 

 

1,144

 

Accumulated dividend – Series F

 

 

 

 

 

1,935

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,935

)

 

 

 

 

 

(1,935

)

Accretion of Series F issuance costs

 

 

 

 

 

18

 

 

 

 

 

 

 

 

 

 

(18

)

 

 

 

 

 

 

 

 

(18

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,481

)

 

 

 

 

 

(8,481

)

Balance at June 30, 2020

 

 

102,030

 

 

$

227,452

 

 

 

 

19,378

 

 

$

2

 

 

$

20,571

 

 

$

(291,079

)

 

$

 

 

$

(270,506

)

The accompanying notes are an integral part of these consolidated financial statements.    

 

6


Table of Contents

 

BigCommerce Holdings, Inc.

Consolidated Statements of Cash Flows

(Unaudited, in thousands)

 

 

Six months ended June 30,

 

 

Six months ended June 30,

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(12,504

)

 

$

(21,573

)

Adjustments to reconcile net loss to net cash used in operating

   activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

1,678

 

 

 

1,116

 

Amortization of discount on debt

 

 

389

 

 

 

27

 

Stock-based compensation

 

 

2,170

 

 

 

1,416

 

Allowance for credit losses

 

 

944

 

 

 

494

 

Accretion on discount to marketable securities

 

 

 

 

 

(69

)

Change in fair value of financial instrument

 

 

(4,413

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(6,005

)

 

 

(3,748

)

Prepaid expenses

 

 

(2,253

)

 

 

821

 

Deferred commissions

 

 

(764

)

 

 

(1,973

)

Accounts payable

 

 

1,871

 

 

 

256

 

Accrued and other current liabilities

 

 

468

 

 

 

3,092

 

Deferred revenue

 

 

1,425

 

 

 

(1,017

)

Net cash used in operating activities

 

 

(16,994

)

 

 

(21,158

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(1,045

)

 

 

(4,069

)

Maturity of marketable securities

 

 

 

 

 

23,450

 

Net cash (used in) provided by investing activities

 

 

(1,045

)

 

 

19,381

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

896

 

 

 

172

 

Proceeds from debt

 

 

40,745

 

 

 

3,677

 

Repayment of debt

 

 

(6,241

)

 

 

(1,025

)

Net cash provided by financing activities

 

 

35,400

 

 

 

2,824

 

Net change in cash and cash equivalents and restricted cash

 

 

17,361

 

 

 

1,047

 

Cash and cash equivalents and restricted cash, beginning of period

 

 

9,150

 

 

 

13,897

 

Cash and cash equivalents and restricted cash, end of period

 

$

26,511

 

 

$

14,944

 

The accompanying notes are an integral part of these consolidated financial statements.

 

7


Table of Contents

 

BigCommerce Holdings, Inc.

Notes to Consolidated Financial Statements

1. Overview

BigCommerce is leading a new era of ecommerce. Our software-as-a-service (“SaaS”) platform simplifies the creation of beautiful, engaging online stores by delivering a unique combination of ease-of-use, enterprise functionality, and flexibility. We power both our customers’ branded ecommerce stores and their cross-channel connections to popular online marketplaces, social networks, and offline point-of-sale systems.

We provide a comprehensive platform for launching and scaling an ecommerce operation, including store design, catalog management, hosting, checkout, order management, reporting, and pre-integration into third-party services like payments, shipping, and accounting. All our stores run on a single code base and share a global, multi-tenant architecture purpose built for security, high performance, and innovation. Our platform serves stores in a wide variety of sizes, product categories, and purchase types, including business-to-consumer and business-to-business.

Our headquarters and principal place of business are in Austin, Texas.

We were formed in Australia in December 2003 under the name Interspire Pty Ltd and reorganized into a corporation in Delaware under the name BigCommerce Holdings, Inc. in February 2013.

References in these consolidated financial statements to “we,” “us,” “our,” the “Company,” or “BigCommerce” refer to BigCommerce Holdings, Inc. and its subsidiaries, unless otherwise stated.

Stock Split and Initial Public Offering

 

On July 24, 2020, we filed with the Secretary of State of the State of Delaware an amendment to our certificate of incorporation that effected a one-for-three reverse stock split of our common stock. All common stock share and per share information for all periods presented has been adjusted to reflect the reverse stock split. The amendment to our certificate of incorporation adjusted the amount of our authorized shares to: 205,000,000 shares of Series 1 common stock, 45,000,000 shares of Series 2 common stock, and 109,030,573 shares of preferred stock. The common stock has a par value of $0.0001 per share. On July 24, 2020, concurrently with the effectiveness of the reverse stock split, the conversion prices applicable to our preferred stock were adjusted proportionately in accordance with our certificate of incorporation. The Series 1 common stock and Series 2 common stock numbers referenced herein and included in this Form 10Q reflect this split.

 

On August 4, 2020, we completed our initial public offering (IPO), in which we issued and sold 7,877,500 shares of our Series 1 common stock, including 1,027,500 shares of Series 1 common stock that were sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of Series 1 common stock at $24.00 per share. The IPO resulted in net proceeds of $175.8 million after deducting underwriting discounts and commissions. Existing stockholders sold an additional 2,495,000 shares of Series 1 common stock, including 325,435 shares of Series 1 common stock that were sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of Series 1 common stock at $24.00 per share. We did not receive any proceeds from the sale of shares by the selling stockholders in the IPO. Expected expenses incurred by us for the IPO were approximately $3.9 million and will be recorded against stockholders’ equity. See Note 12 Subsequent Events for additional information.

 

  2. Summary of significant accounting policies

Basis of presentation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

In the opinion of management, these financial statements contain all adjustments, consisting of normal recurring accruals, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2020.

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2. Summary of significant accounting policies (continued)

The accompanying interim financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s final prospectus filed with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, on August 5, 2020 (“Prospectus”).

Basis of consolidation

The accompanying consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. Our fiscal year ends on December 31.

 

Use of estimates

The preparation of consolidated financial statements in conformity with GAAP requires certain financial instruments to be recorded at fair value; requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods. Significant estimates, judgments, and assumptions in these consolidated financial statements include: allocating variable consideration for revenue recognition; the amortization period for deferred commissions; the allowance for credit losses; a determination of the deferred tax asset valuation allowance and the valuation of our common stock used to determine stock-based compensation expense. Because of the use of estimates inherent in the financial reporting process and given the additional or unforeseen effects from the COVID-19 pandemic, actual results could differ from those estimates, and such differences could be material to our consolidated financial statements.

COVID-19, declared a global pandemic by the World Health Organization on March 11, 2020, has caused disruption to the economies and communities of the United States and our target international markets. In the interest of public health, many governments closed physical stores and places of business deemed non-essential. This precipitated a significant shift in shopping behavior from offline to online. Our business has benefited from this shift, both in accelerated sales growth for our existing customers’ stores, and in our sales of new store subscriptions to customers. Nevertheless, we do not have certainty that those trends will continue; the COVID-19 pandemic and the uncertainty it has created in the global economy could materially adversely affect our business, financial condition, and results of operations.

 

Segment and geographic information

Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews the financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Accordingly, we have determined that we operate as a single operating and reportable segment. Revenue by geographic region was as follows:

 

 

 

Three months ended June 30,

 

 

Six months ended June 30,

 

(Unaudited, in thousands)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas – U.S.

 

$

28,883

 

 

$

22,225

 

 

$

55,616

 

 

$

43,180

 

Americas – other

 

 

1,305

 

 

 

904

 

 

 

2,405

 

 

 

1,773

 

EMEA

 

 

2,871

 

 

 

1,739

 

 

 

5,313

 

 

 

3,361

 

APAC

 

 

3,257

 

 

 

2,367

 

 

 

6,156

 

 

 

4,505

 

Total revenue

 

$

36,316

 

 

$

27,235

 

 

$

69,490

 

 

$

52,819

 

 

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2. Summary of significant accounting policies (continued)

Long-lived assets by geographic region was as follows:

 

 

 

June 30,